New Jersey Resources (NYSE:NJR) today reported solid results for the
first quarter of fiscal 2016 and reaffirmed net financial earnings (NFE)
guidance for the year.

A reconciliation of NFE for the first quarter of fiscal years 2016 and
2015 is provided below.

Three Months Ended

December 31,

(Thousands)

2015

2014

Net income

$

48,647

$

123,320

Add:

Unrealized (gain) on derivative instruments

(1,135

)

(88,673

)

Effects of economic hedging related to natural gas inventory

3,813

(8,765

)

Tax adjustments

(1,693

)

29,227

Net financial earnings

$

49,632

$

55,109

Weighted Average Shares Outstanding

Basic

85,675

84,552

Diluted

86,676

85,574

Basic earnings per share

$

.57

$

1.46

Basic net financial earnings per share

$

.58

$

.65

NFE is a financial measure not calculated in accordance with generally
accepted accounting principles (GAAP) of the United States as it
excludes all unrealized, and certain realized, gains and losses
associated with derivative instruments, net of applicable tax
adjustments. For further discussion of this financial measure, as well
as reconciliation to the most comparable GAAP measure, please see the
explanation below under “Non-GAAP Financial Information.”

NJR Reports Strong First-Quarter Fiscal 2016 Net Financial Earnings

In the first quarter of fiscal 2016, NJR reported NFE of $49.6 million,
or $.58 per share, compared with $55.1 million, or $.65 per share, in
the first quarter of fiscal 2015.

Three Months Ended

December 31,

(Thousands)

2015

2014

Net Financial Earnings (Loss)

New Jersey Natural Gas

$

30,570

$

28,186

NJR Energy Services

10,014

16,436

NJR Clean Energy Ventures

7,505

9,008

NJR Midstream

2,344

2,120

NJR Home Services and Other

(583

)

(592

)

Sub-total

49,850

55,158

Eliminations

(218

)

(49

)

Total

$

49,632

$

55,109

“The women and men of New Jersey Resources are the driving force behind
all we achieve and thanks to their hard work and contributions, we are
off to another solid start in fiscal 2016,” said Laurence M. Downes,
Chairman and CEO of New Jersey Resources. “New Jersey Natural Gas
(NJNG), our primary business, led our results and continues to add
customers as demand for new natural gas service remains strong in NJNG’s
service territory.”

NJR Reaffirms Fiscal 2016 Earnings Guidance

NJR reaffirmed previously announced fiscal 2016 NFE guidance in a range
of $1.55 to $1.65 per basic share, subject to the risks and
uncertainties identified below under “Forward-Looking Statements.”

NJR expects its regulated businesses to generate between 65 to 80
percent of total NFE, with NJNG continuing to be the largest
contributor. The following chart represents NJR’s current expected
contributions from its subsidiaries:

Company

Expected Fiscal 2016Net Financial Earnings
Contribution

New Jersey Natural Gas

60 to 70 percent

NJR Midstream

5 to 10 percent

Total Regulated

65 to 80 percent

NJR Clean Energy Ventures

10 to 20 percent

NJR Energy Services

5 to 15 percent

NJR Home Services

1 to 3 percent

Steady Growth Continues at New Jersey Natural Gas

For the first quarter of fiscal 2016, NJNG’s NFE were $30.6 million,
compared with $28.2 million during the same period last year. Results
were driven by higher utility gross margin from customer additions,
Basic Gas Supply Service (BGSS) incentive programs and regulatory
initiatives, such as The SAVEGREEN Project® (SAVEGREEN).

The residential new construction and conversion markets remain strong in
NJNG’s service territory, providing consistent, steady growth
opportunities for the foreseeable future. NJNG added 2,046 new customers
in the first quarter of fiscal 2016, compared with 2,581 during the same
period last year. NJNG expects to add approximately 8,150 new customers
this fiscal year, a 4 percent increase over last year.

NJNG currently expects to add a total of 24,000 to 28,000 new customers
over the next three years, representing a new customer annual growth
rate of about 1.6 percent. NJNG anticipates these new customers and
conversions will contribute approximately $4.4 million annually to
utility gross margin. For more information on utility gross margin,
please see “Non-GAAP Financial Information” below.

The SAVEGREEN Project

In the first quarter of fiscal 2016, SAVEGREEN, NJNG’s energy-efficiency
program, invested $8.6 million in grants, incentives and the On-Bill
Repayment Program (OBRP) to help make upgrading to high-efficiency
natural gas equipment more affordable. In total, NJNG has the approval
to invest approximately $220 million in SAVEGREEN grants, financial
incentives and the OBRP over the life of the program, which is in place
through July 31, 2017. Currently, the company is authorized to earn an
overall return on its SAVEGREEN investments, ranging from 6.69 percent
to 7.76 percent with a return on equity (ROE) ranging from 9.75 percent
to 10.3 percent. The recovery period varies from two to 10 years,
depending on the type of energy-efficiency investment.

Since its inception in 2009, SAVEGREEN grants, incentives and the OBRP,
totaling over $126.1 million, have helped more than 41,000 customers
reduce energy consumption and lower their energy bills. This program
directly supports the state’s Energy Master Plan. In addition, through
SAVEGREEN, NJNG has helped generate more than $300 million in economic
activity by working with the nearly 2,500 contractors who have
participated in the project.

New Jersey Natural Gas BGSS Incentive Programs

In the first quarter of fiscal 2016, NJNG’s BGSS incentive programs,
which include off-system sales, capacity release and storage incentives,
contributed $4.5 million to utility gross margin, compared with $4.2
million in the first quarter of fiscal 2015. The higher results were
attributed to improved margins in the storage incentive program.

NJNG shares the gross margin earned from these incentive programs with
customers and shareowners, according to gross margin-sharing formulas
authorized by the New Jersey Board of Public Utilities (BPU). Since
their inception in 1992, these incentive programs have saved customers
approximately $823 million and provided shareowners with $1.28 per share
in NFE, which is an average of $.05 per share annually.

“Our primary mission is to provide safe, reliable and resilient service
to our customers,” stated Downes. “With our significant infrastructure
investments, we eliminated all cast iron mains from our distribution
system and are committed to ensuring reliability and meeting our
customers' expectations.”

Safety Acceleration and Facilities Enhancement Program

In the first quarter of fiscal 2016, NJNG invested $7.2 million in its
Safety Acceleration and Facilities Enhancement (SAFE) program, a planned
$130 million, four-year infrastructure investment approved by the BPU in
2012. As a part of this program, NJNG is replacing 276 miles of its
distribution main to further ensure the safety, reliability and
integrity of its natural gas delivery system. In December 2015, NJNG
became the first utility in the state to eliminate all cast iron mains
from its distribution system and is continuing to replace 55 miles of
unprotected steel main and associated services. Current SAFE investments
will earn a weighted average cost of capital of 6.9 percent, including a
9.75 percent ROE. In November 2015, NJNG filed with the BPU to replace
the final 276 miles of unprotected steel main and associated services
from its natural gas distribution pipeline network.

Reinvestment in System Enhancement Program

NJNG invested $5.1 million in the first quarter of fiscal 2016 in its
Reinvestment in System Enhancement (NJ RISE) program, a five-year,
$102.5 million investment. NJ RISE consists of six capital projects,
designed to improve NJNG’s service disruption response and strengthen
the overall safety, reliability and resiliency of its natural gas
distribution and transmission systems. These system enhancements are
designed to help diminish the impact of future major weather events and
align with the state’s directive for improved energy resiliency and
preparedness.

Liquefied Natural Gas Plant

NJNG continues to make progress toward completing its liquefaction
processing project at its Liquefied Natural Gas (LNG) Plant in Howell,
New Jersey, investing $4.1 million in the first quarter. In total, this
approximately $28 million investment will enable the company to liquefy
pipeline natural gas for peak-day use, ensure system integrity and
reliability as well as reduce LNG transportation and capacity costs. In
addition, this project will benefit customers by lowering BGSS costs,
help the environment by reducing emissions related to the transportation
of LNG and create additional value for shareowners. NJNG expects the
liquefaction process at the LNG plant to be operational in May 2016.

Southern Reliability Link Project

Progress on the Southern Reliability Link (SRL) project, a 30-mile,
30-inch transmission main to support system reliability and resiliency,
continues to move forward. In December 2015, the New Jersey Pinelands
Commission issued NJNG a certificate of filing, which underscores that
this proposed route is consistent with the Pinelands Comprehensive
Management Plan. On January 27, 2016, the BPU approved the NJNG proposed
SRL pipeline installation, operation and route selection as modified by
NJNG, including specific requirements regarding permitting, safety and
integrity assessment. The BPU is currently reviewing NJNG’s petition
seeking a determination that the SRL is reasonably necessary for the
service, convenience and welfare of the public, as well as to find that
certain ordinances, permits and regulations have no application to the
project.

NJR Clean Energy Ventures (NJRCEV) generated NFE of $7.5 million for the
first quarter of fiscal 2016, compared with $9 million in the same
period last year. The results reflect the decreased amount of tax
credits being recognized due to lower consolidated quarterly income.
Additionally, NJRCEV recognized increased costs related to depreciation
and operation and maintenance, partially offset by higher revenues
associated with commercial operation of its wind farms.

In December 2015, Congress passed legislation that extended the
Production Tax Credits (PTCs), which are based on kilowatt-hour (kWh)
output, at the existing value of 2.3 cents per kWh for wind projects
that have commenced construction through December 2016. Projects with
construction beginning in 2017 will qualify for 10 years of credits at
80 percent of the full PTC value, while projects started in 2018 and
2019 will qualify for 10 years of credits at 60 percent and 40 percent
of the full PTC value, respectively. Thereafter, the PTC is eliminated.

In the same bill, the Investment Tax Credit (ITC) was extended at its
current value of 30 percent for solar projects that have commenced
construction before December 2019. The credit is reduced to 26 percent
for projects started in 2020, and to 22 percent in 2021 provided these
projects are in service by December 2023. Commercial solar projects
started after 2021 are eligible for a 10 percent ITC, while the credit
is eliminated for homeowners at that time.

The PTC and ITC extensions are expected to help sustain long-term growth
in wind and solar markets in the U.S., thereby providing NJRCEV with
added flexibility and options to deploy capital for the next several
years.

Onshore Wind Farms Diversify Portfolio

On February 2, 2016, NJRCEV announced its fourth onshore wind project,
the Ringer Hill Wind Farm, which is located along the
Pennsylvania-Maryland border in Somerset County, Pennsylvania,
approximately 60 miles southeast of Pittsburgh.

NJRCEV will invest approximately $84 million to construct, own and
operate the wind farm consisting of 14 GE turbines with a total capacity
of 39.9 megawatts (MW). NJRCEV expects the Ringer Hill Wind Farm to be
operational during the first quarter of fiscal 2017. The majority of the
energy produced will be hedged under a 15-year agreement with an
industrial counterparty. When this project is complete, NJRCEV’s onshore
wind capacity will total more than 120 MW, capable of producing enough
energy to power 37,500 homes per year.

On December 11, 2015, NJRCEV placed the Alexander Wind Farm, its third
and largest onshore wind project, into service. Located in Rush County,
Kansas, approximately 120 miles northwest of Wichita, the wind farm
consists of 21 turbines with a total capacity of 50.7 MW and represents
an $84.5 million investment.

The energy produced at the Alexander Wind Farm, as well as the renewable
attributes, will be sold under two long-term agreements. The Kansas City
Board of Public Utilities (KCBPU) has signed a 20-year power purchase
agreement for approximately 50 percent of the energy. The KCBPU serves
approximately 65,000 electric and 59,000 water customers in Wyandotte
County, Kansas. The remaining energy will be purchased through a 15-year
agreement with Yahoo!, Inc., the global Internet corporation
headquartered in Sunnyvale, CA. Yahoo! will use the wind power to offset
much of its energy usage in the Great Plains region.

NJRCEV expects that these onshore wind farm projects will qualify for
PTCs, for 10 years and will be used by NJR. NJRCEV’s other wind farms
include the Carroll Area Wind Farm in Iowa and the Two Dot Wind Farm in
Montana, which have a combined capacity of approximately 30 MW.

NJRCEV has four ground-mounted, grid-connected commercial solar projects
under construction in New Jersey, all of which it expects to be in
service by September 2016. These include a 7.2 MW, $16.8 million project
in Buena Vista Township, a 5.4 MW, $12.4 million project in Flemington,
a 3.3 MW, $8 million project in Upper Freehold and a 2.2 MW, $7.5
million project in East Amwell.

During the first quarter of fiscal 2016, the company’s residential solar
lease program, The Sunlight Advantage®, added 84 customers,
totaling .7 MWs of capacity. The Sunlight Advantage currently provides
savings to nearly 4,050 eligible homeowners through both roof- and
ground-mounted solar systems with no upfront installation or maintenance
costs. NJRCEV expects to invest approximately $40 million in residential
solar systems in fiscal 2016, compared with $25 million in fiscal 2015.

NJR’s effective tax rate is significantly impacted by the amount of tax
credits that are forecasted to be earned during the fiscal year. GAAP
requires NJR to estimate its annual effective tax rate and use this rate
to calculate its year-to-date tax provision. Based on projects completed
in the first quarter, NJRCEV’s forecast of projects to be completed for
the balance of the fiscal year, as well as projected pre-tax income for
the year, NJR’s estimated annual effective tax rate is 14.7 percent
compared to 24.9 percent during the same period the previous year.
Accordingly, $10.1 million related to tax credits, net of deferred
taxes, were recognized in the first quarter of fiscal 2016, compared
with $18 million, net of deferred taxes, in the same period last year.

For NFE purposes, the effective tax rate for fiscal 2016 is estimated at
16.4 percent and $9.6 million of tax credits were recognized in the
first fiscal quarter, compared with $11.4 million last year. For further
discussion of this tax adjustment and reconciliation to the most
comparable GAAP measure, please see the explanation below under
“Non-GAAP Financial Information.”

The estimated effective tax rate is based on information and assumptions
that are subject to change, and may have a material impact on quarterly
and annual NFE. Factors considered by management in estimating
completion of projects during the fiscal year include, but are not
limited to, board of directors’ approval, regulatory approval, execution
of various contracts, including power purchase agreements, construction
logistics, permitting and interconnection completion. See the
“Forward-Looking Statements” section of this news release for further
information regarding the inherent risks associated with solar
investments.

NJR Energy Services Results

First-quarter fiscal 2016 NFE at NJR Energy Services were $10 million,
compared with $16.4 million during the same period last year. The
reduction in NFE is primarily due to decreased market volatility, driven
primarily by the record warmth associated with the prevailing El Niño
winter weather pattern.

A leader in the wholesale natural gas marketplace, NJRES has physical
assets strategically located across the country, including the Marcellus
region and Midwest, and holds firm capacity on pipelines throughout
North America. With its commitment to disciplined risk management, the
NJRES team identifies growth opportunities and creates customized energy
solutions for a diverse customer base. Currently, NJRES’ asset portfolio
consists of approximately 41 billion cubic feet (Bcf) of firm storage
capacity and 1.65 Bcf/day of firm transportation.

NJR Midstream Results Improve

NJR’s midstream segment, NJR Midstream, reported first-quarter 2016 NFE
of $2.3 million, compared with $2.1 million during the same period in
2015. The results were due primarily to increases in storage service
revenue and demand at Steckman Ridge, a 12 Bcf natural gas storage
facility in southwestern Pennsylvania.

NJR Midstream also includes its 20 percent interest in the PennEast
Pipeline. This 118-mile pipeline is designed to bring lower cost natural
gas produced in the Marcellus Shale region to homes and businesses in
Pennsylvania and New Jersey, and provide greater system reliability for
local utilities. PennEast filed a formal application with FERC in the
fourth quarter of fiscal 2015 and currently estimates an in-service date
of fiscal 2018.

NJR Home Services Announces Results

In the first quarter of fiscal 2016, NJR Home Services (NJRHS), the
company’s unregulated retail and appliance service subsidiary, reported
a loss of $443,000 compared with a loss of $777,000 in the same period
last year. The improved results were due primarily to contributions from
its residential solar program.

Webcast Information

NJR will host a live webcast to discuss its financial results today at
10 a.m. ET. A few minutes prior to the webcast, go to njresources.com
and select “Investor Relations,” then scroll down to the “Events &
Presentations” section and click on the webcast link.

Forward-Looking Statements

Certain statements contained in this news release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. New Jersey Resources (NJR or the Company) cautions
readers that the assumptions forming the basis for forward-looking
statements include many factors that are beyond NJR’s ability to control
or estimate precisely, such as estimates of future market conditions and
the behavior of other market participants. Words such as “anticipates,”
“estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,”
“believes,” “should” and similar expressions may identify
forward-looking information and such forward-looking statements are made
based upon management’s current expectations and beliefs as of this date
concerning future developments and their potential effect upon NJR.
There can be no assurance that future developments will be in accordance
with management’s expectations or that the effect of future developments
on NJR will be those anticipated by management. Forward-looking
information in this presentation includes, but is not limited to,
certain statements regarding NJR’s NFE guidance for fiscal 2016 and NFE
growth beyond 2016, forecasted contribution of business segments to
fiscal 2016 NFE and to NFE beyond fiscal 2016, future NJNG customer
growth, future NJNG capital expenditures and infrastructure investments,
NJRCEV’s onshore wind and solar investments, NJR’s estimated effective
tax rate, the extension of the PTC and ITC, and the PennEast Pipeline
project.

The factors that could cause actual results to differ materially from
NJR’s expectations include, but are not limited to, weather and economic
conditions; changes in the rate of NJNG’s customer growth; volatility of
natural gas and other commodity prices; changes in rating agency
requirements and/or credit ratings; the impact of volatility in the
credit markets; the ability to comply with debt covenants; the impact to
the asset values and resulting higher costs and funding obligations of
NJR’s pension and post-employment benefit plans as a result of downturns
in the financial markets, lower discount rates, revised actuarial
assumptions or impacts associated with the Patient Protection and
Affordable Care Act; accounting effects and other risks associated with
hedging activities and use of derivatives contracts; commercial and
wholesale credit risks, including the availability of creditworthy
customers and counterparties and liquidity in the wholesale energy
trading market; the ability to obtain governmental and regulatory
approvals, land-use rights, electrical grid connection and/or financing
for the construction, development and operation of NJR’s non-regulated
energy investments and NJNG’s planned infrastructure projects in a
timely manner; risks associated with the management of the company’s
joint ventures, partnerships and investment in a master limited
partnership; risks associated with our investments in renewable energy
projects, including the availability of regulatory and tax incentives,
the availability of viable projects and NJR’s eligibility for ITCs and
PTCs, the future market for SRECs and operational risks related to
projects in service; timing of qualifying for ITCs and PTCs due to
delays or failures to complete planned solar and wind energy projects;
the level and rate at which NJNG’s costs and expenses are incurred and
the extent to which they are allowed to be recovered from customers
through the regulatory process, including through the base rate case
filing; access to adequate supplies of natural gas and dependence on
third-party storage and transportation facilities for natural gas
supply; operating risks incidental to handling, storing, transporting
and providing customers with natural gas; risks related to our employee
workforce; the regulatory and pricing policies of federal and state
regulatory agencies; the costs of compliance with present and future
environmental laws, including potential climate change-related
legislation; risks related to changes in accounting standards; the
disallowance of recovery of environmental-related expenditures and other
regulatory changes; environmental-related and other litigation and other
uncertainties; risks related to cyber-attack or failure of information
technology systems; and the impact of natural disasters, terrorist
activities, and other extreme events on our operations and customers.
The aforementioned factors are detailed in the “Risk Factors” sections
of our Annual Report on Form 10-K filed with the Securities and Exchange
Commission (SEC) on November 24, 2015, which is available on the SEC’s
website at sec.gov. Information included in this presentation is
representative as of today only, and while NJR periodically reassesses
material trends and uncertainties affecting NJR’s results of operations
and financial condition in connection with its preparation of
management’s discussion and analysis of results of operations and
financial condition contained in its Quarterly and Annual Reports filed
with the SEC, NJR does not, by including this statement, assume any
obligation to review or revise any particular forward-looking statement
referenced herein in light of future events.

Non-GAAP Financial Information

This press release includes the non-GAAP measures NFE (losses),
financial margin and utility gross margin. A reconciliation of these
non-GAAP financial measures to the most directly comparable financial
measures calculated and reported in accordance with GAAP can be found
below. As an indicator of the company’s operating performance, these
measures should not be considered an alternative to, or more meaningful
than, operating income as determined in accordance with GAAP. This
information has been provided pursuant to the requirements of SEC
Regulation G.

NFE (losses) and financial margin exclude unrealized gains or losses on
derivative instruments related to the company’s unregulated subsidiaries
and certain realized gains and losses on derivative instruments related
to natural gas that has been placed into storage at NJRES. Volatility
associated with the change in value of these financial and physical
commodity contracts is reported in the income statement in the current
period. In order to manage its business, NJR views its results without
the impacts of the unrealized gains and losses, and certain realized
gains and losses, caused by changes in value of these financial
instruments and physical commodity contracts prior to the completion of
the planned transaction because it shows changes in value currently
instead of when the planned transaction ultimately is settled. An annual
estimated effective tax rate is calculated for NFE purposes and any
necessary quarterly tax adjustment is applied to NJRCEV, as such
adjustment is related to tax credits generated by NJRCEV.

NJNG’s utility gross margin represents the results of revenues less
natural gas costs, sales and other taxes and regulatory rider expenses,
which are key components of the company’s operations that move in
relation to each other. Natural gas costs, sales and other taxes and
regulatory rider expenses are passed through to customers and,
therefore, have no effect on gross margin. Management uses these
non-GAAP financial measures as supplemental measures to other GAAP
results to provide a more complete understanding of the company’s
performance. Management believes these non-GAAP measures are more
reflective of the company’s business model, provide transparency to
investors and enable period-to-period comparability of financial
performance. A reconciliation of all non-GAAP financial measures to the
most directly comparable financial measures calculated and reported in
accordance with GAAP, can be found below. For a full discussion of NJR’s
non-GAAP financial measures, please see NJR’s 2015 Form 10-K, Item 7 and
most recent Form 10-Q, Part I, Item 2.

About New Jersey Resources

New Jersey Resources (NYSE: NJR) is a Fortune 1000 company that
provides safe and reliable natural gas and clean energy services,
including transportation, distribution and asset management. With annual
revenues in excess of $3 billion, NJR is comprised of five primary
businesses:

New Jersey Natural Gas is NJR’s principal subsidiary thatoperates
and maintains over 7,000 miles of natural gas transportation and
distribution infrastructure to serve over half a million customers in
New Jersey’s Monmouth, Ocean and parts of Burlington, Morris and
Middlesex counties.

NJR Energy Services manages a diversified portfolio of natural
gas transportation and storage assets and provides physical natural
gas services to its customers across North America.

NJR Midstream serves customers from local distributors and
producers to electric generators and wholesale marketers through its
equity ownership in a natural gas storage facility and its stake in
Dominion Midstream Partners, L.P., as well as its 20 percent equity
interest in the PennEast Pipeline Project.

NJR Home Services provides heating, central air conditioning,
standby generators, solar and other indoor and outdoor comfort
products to residential homes and businesses throughout New Jersey.

NJR and its nearly 1,000 employees are committed to helping customers
save energy and money by promoting conservation and encouraging
efficiency through Conserve to Preserve® and initiatives such as The
SAVEGREEN Project® and The Sunlight Advantage®.

For more information about NJR:

Visit www.njresources.com.Follow
us on Twitter @NJNaturalGas.“Like” us on
facebook.com/NewJerseyNaturalGas.Download our free NJR investor
relations app for iPad, iPhone and Android.

NJR-E

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES

NEW JERSEY RESOURCES

Three Months Ended

December 31,

(Thousands)

2015

2014

A reconciliation of Net income at NJR to Net financial earnings,
is as follows:

Net income

$

48,647

$

123,320

Add:

Unrealized (gain) on derivative instruments

(1,135

)

(88,673

)

Effects of economic hedging related to natural gas inventory

3,813

(8,765

)

Tax adjustments

(1,693

)

29,227

Net financial earnings

$

49,632

$

55,109

Weighted Average Shares Outstanding

Basic

85,675

84,552

Diluted

86,676

85,574

Basic net financial earnings per share

$

.58

$

.65

NJR ENERGY SERVICES

The following table is a computation of Financial margin at
Energy Services:

Operating revenues

$

278,693

$

603,688

Less: Gas purchases

260,239

474,947

Add:

Unrealized (gain) on derivative instruments and related transactions

(2,387

)

(90,000

)

Effects of economic hedging related to natural gas inventory

3,813

(8,765

)

Financial margin

$

19,880

$

29,976

A reconciliation of Operating income at Energy Services, the
closest GAAP financial measurement, to Financial margin is as
follows:

Operating income

$

14,437

$

125,277

Add:

Operation and maintenance expense

3,757

2,988

Depreciation and amortization

23

22

Other taxes

237

454

Subtotal – Gross margin

18,454

128,741

Add:

Unrealized (gain) on derivative instruments and related transactions

(2,387

)

(90,000

)

Effects of economic hedging related to natural gas inventory

3,813

(8,765

)

Financial margin

$

19,880

$

29,976

A reconciliation of Energy Services Net income to Net financial
earnings, is as follows:

Net income

$

9,106

$

78,887

Add:

Unrealized (gain) on derivative instruments and related transactions

(2,387

)

(90,000

)

Effects of economic hedging related to natural gas, net of taxes

3,813

(8,765

)

Tax adjustments

(518

)

36,314

Net financial earnings

$

10,014

$

16,436

NJR CLEAN ENERGY VENTURES

A reconciliation of Clean Energy Ventures Net income to Net
financial earnings, is as follows:

Net income

$

8,226

$

15,607

Add:

Tax adjustments

(721

)

(6,599

)

Net financial earnings

$

7,505

$

9,008

NEW JERSEY RESOURCES

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

December 31,

(Thousands, except per share data)

2015

2014

OPERATING REVENUES

Utility

$

151,606

$

208,727

Nonutility

292,652

615,397

Total operating revenues

444,258

824,124

OPERATING EXPENSES

Gas purchases

Utility

46,665

84,263

Nonutility

254,088

472,971

Related parties

2,074

3,264

Operation and maintenance

46,233

44,759

Regulatory rider expenses

9,628

21,463

Depreciation and amortization

16,482

14,386

Energy and other taxes

9,637

14,321

Total operating expenses

384,807

655,427

OPERATING INCOME

59,451

168,697

Other income, net

1,924

(110

)

Interest expense, net

6,777

7,195

INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF AFFILIATES

54,598

161,392

Income tax provision

8,357

40,867

Equity in earnings of affiliates

2,406

2,795

NET INCOME

$

48,647

$

123,320

EARNINGS PER COMMON SHARE

Basic

$

.57

$

1.46

Diluted

$

.56

$

1.44

DIVIDENDS DECLARED PER COMMON SHARE

$

.24

$

.225

AVERAGE SHARES OUTSTANDING

Basic

85,675

84,552

Diluted

86,676

85,574

NEW JERSEY RESOURCES

Three Months Ended

December 31,

(Thousands, except per share data)

2015

2014

Operating Revenues

Natural Gas Distribution

$

151,606

$

208,727

Energy Services

278,693

603,688

Clean Energy Ventures

7,794

6,235

Midstream

—

—

Home Services and Other

9,573

9,011

Sub-total

447,666

827,661

Eliminations

(3,408

)

(3,537

)

Total

$

444,258

$

824,124

Operating Income (Loss)

Natural Gas Distribution

$

47,707

$

45,564

Energy Services

14,437

125,277

Clean Energy Ventures

(1,426

)

(703

)

Midstream

(151

)

(152

)

Home Services and Other

(1,030

)

(1,124

)

Sub-total

59,537

168,862

Eliminations

(86

)

(165

)

Total

$

59,451

$

168,697

Equity in Earnings of Affiliates

Midstream

$

3,545

$

3,775

Eliminations

(1,139

)

(980

)

Total

$

2,406

$

2,795

Net Income (Loss)

Natural Gas Distribution

$

30,570

$

28,186

Energy Services

9,106

78,887

Clean Energy Ventures

8,226

15,607

Midstream

2,344

2,120

Home Services and Other

(583

)

(592

)

Sub-total

49,663

124,208

Eliminations

(1,016

)

(888

)

Total

$

48,647

$

123,320

Net Financial Earnings (Loss)

Natural Gas Distribution

$

30,570

$

28,186

Energy Services

10,014

16,436

Clean Energy Ventures

7,505

9,008

Midstream

2,344

2,120

Home Services and Other

(583

)

(592

)

Sub-total

49,850

55,158

Eliminations

(218

)

(49

)

Total

$

49,632

$

55,109

Throughput (Bcf)

NJNG, Core Customers

30.0

23.4

NJNG, Off System/Capacity Management

55.9

52.9

NJRES Fuel Mgmt. and Wholesale Sales

132.7

165.5

Total

218.6

241.8

Common Stock Data

Yield at December 31

2.9

%

2.9

%

Market Price

High

$

34.07

$

32.14

Low

$

28.02

$

24.65

Close at December 31

$

32.96

$

30.60

Shares Out. at December 31

85,809

85,303

Market Cap. at December 31

$

2,828,268

$

2,610,271

NATURAL GAS DISTRIBUTION

Three Months Ended

(Unaudited)

December 31,

(Thousands, except customer & weather data)

2015

2014

Utility Gross Margin

Operating revenues

$

151,606

$

208,727

Less:

Gas purchases

45,243

88,568

Energy and other taxes

6,908

11,528

Regulatory rider expense

9,628

21,463

Total Utility Gross Margin

$

89,827

$

87,168

Utility Gross Margin, Operating Income and Net Income

Residential

$

55,076

$

52,844

Commercial, Industrial & Other

13,279

13,097

Firm Transportation

15,547

16,197

Total Firm Margin

83,902

82,138

Interruptible

1,390

853

Total System Margin

85,292

82,991

Off System/Capacity Management/FRM/Storage Incentive

4,535

4,177

Total Utility Gross Margin

89,827

87,168

Operation and maintenance expense

29,628

29,980

Depreciation and amortization

11,238

10,545

Other taxes not reflected in gross margin

1,254

1,079

Operating Income

$

47,707

$

45,564

Net Income

$

30,570

$

28,186

Throughput (Bcf)

Residential

8.9

12.4

Commercial, Industrial & Other

1.7

2.3

Firm Transportation

3.4

4.6

Total Firm Throughput

14.0

19.3

Interruptible

16.0

4.1

Total System Throughput

30.0

23.4

Off System/Capacity Management

55.9

52.9

Total Throughput

85.9

76.3

Customers

Residential

441,464

428,088

Commercial, Industrial & Other

27,240

26,697

Firm Transportation

47,536

54,712

Total Firm Customers

516,240

509,497

Interruptible

35

33

Total System Customers

516,275

509,530

Off System/Capacity Management*

27

43

Total Customers

516,302

509,573

*The number of customers represents those active during the last
month of the period.

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